Iraqi panel draws up compromise oil law

BAGHDAD, Jan. 19 (UPI) -- An Iraqi committee has worked out a compromise law that would distribute oil revenues through the federal government, The New York Times reported Friday.

The law needs approval from the cabinet and parliament and the compromise could still unravel. Distribution of oil revenues and control of the oil industry is one of the most difficult facing the government as it tries to unite the country, because the major oil fields are in Kurdish or Shiite areas, leaving out the Sunnis.

"This will give us the basis of the unity of this country," said Ali Baban, the planning minister and a member of the Iraqi Islamic Party who is on the committee. "We pushed for the center in Baghdad, but we didn't neglect the Kurds and other regions."

Members of the committee told the Times that one of the hardest issues to resolve was final approval of oil contracts.

The bill gives that power to a national committee while avoiding the word "approve" and allows regional groups to initiate the process. It also sets up guidelines that would limit the national committee's freedom of action.